News Releases

News Release - Manitoba

July 11, 2007

PROVINCE ANNOUNCES TAX CREDIT INCENTIVE RENEWED


More Good News For Mineral Exploration: Rondeau

Mineral exploration in the province will continue to be bolstered by the Mineral Exploration Tax Credit, Science, Technology, Energy and Mines Minister Jim Rondeau announced today.
 
“Manitobans who invest in flow-through shares to finance a Manitoba-based exploration project will receive a 10 per cent credit,” said Rondeau. “Top that with the 15 per cent federal exploration tax credit and you have an attractive investment climate for mineral exploration.”
 
“We are delighted with the renewal of the tax credit,” said David Markham, executive vice-president, the Mining Association of Manitoba.  “The mining industry is currently facing intense competition for global investment as a result of high demand for commodities. This tax credit gives Manitoba a further competitive edge in attracting new investment capital to further the advancement of exciting mineral exploration projects.”
 
“The Manitoba Exploration Tax Credit has provided a powerful incentive to invest in Manitoba to develop its mineral wealth,” said Brian E. Robertson, president, Victory Nickel Ltd.  “Our company will invest in excess of $7 million in 2007 advancing exploration properties in the Thompson nickel belt. The Exploration Tax Credit has also enabled us to continue and expand our programs.”
 
The Manitoba Mineral Exploration Tax Credit (MMETC) was first introduced in the 2002 provincial budget to stimulate investment in exploration projects in the province.  It was designed to harmonize with the federal Investment Tax Credit for Exploration in Canada (ITCE). Renewal of the Manitoba credit coincides with the extension of the ITCE announced in the 2007 federal budget.
 
Manitoba also supports exploration with direct financial assistance through the Mineral Exploration Assistance Program (MEAP).  MEAP offers $2.5 million annually to assist companies exploring in the province.  In addition, $123,000 is available annually for individuals or companies through the Prospectors Assistance Program to encourage mineral prospecting in Manitoba.
 
Rondeau noted that since 1999, there have been more than 400 exploration projects completed and $106 million in exploration expenditures reported under MEAP.
  
“That’s a seven to one return on our investment,” said Rondeau. “The result is new jobs, community economic development and increased geological knowledge which ultimately can lead to new mine development.”
 
Rondeau said Manitoba is ranked first in the world for having the best policy environment for mineral investment because it provides financial incentives that reduce company costs and has a transparent and stable environment for investment that helps mitigate risk.
 
Last year was a banner year for mining in Manitoba. Some of the good news included:
·         The value of mineral production broke the $2 billion mark, a 61.5 per cent increase over 2005’s $1.3 billion.
·         Preliminary estimates peg exploration expenditures at $46.9 million, the second highest on record. Expenditures in 2005 were $52.9 million.
·         Manitoba was rated by exploration and mining companies responding to the Fraser Institute Annual Survey of Mining Companies 2006-07 as having the best policy environment in the world for mineral investment.
·         Work continued on several advanced exploration projects for base and precious metals that have the potential to become new mines.
·         BHP Billiton announced a $15-million investment to explore Manitoba’s untapped potash deposits in the Russell-Binscarth area of southwestern Manitoba.
 
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